Asignacion Caso Capitulo 18

CA 18-3

(a)

The point of sale is the most widely used basis for the timing of revenue recognition
because in most cases it provides the degree of objective evidence that control has
transferred to the customer. In other words, sales transactions with outsiders represent the
point in the revenue-generating process when most of the uncertainty about satisfying a
performance obligation is resolved.

its
realization remains to be validated by actual sales.
Also. the amount of revenue
anticipated from the processes of production is merely prospective revenue.
To criticize the sales basis as not being sufficiently conservative because accounts
receivable do not represent disposable funds. bad debts and collection costs) may occur in a period subsequent to the sale
does not detract from the overall usefulness of the sales basis for the timing of
revenue recognition. the investment of funds in receivables should
be regarded as a policy designed to increase total revenues. appropriately recognized as that
. sales returns) and some expenses
(e.
though unavoidable.. This assumption disregards the
fact that the sale usually represents the decisive factor in satisfying a performance
obligation and substitutes for it the administrative function of managing and
collecting receivables.
(c)
Over-time. For these firms the point
of sale is far less significant to satisfying a performance obligation than is production
activity because the sale is assured under the contract (except of course where
performance is not substantially in accordance with the contract terms)... net income should depend
on the amount of cash generated during the period. therefore. In other words. Both can be estimated with sufficient accuracy so as not to
detract from the reliability of reported net income.
The fact that some revenue adjustments (e. bad debts and
collection costs) should be matched with the sales in the proper period.g. generally it is not feasible to measure revenue on the basis of operating
activity. estimating errors. the sale cannot be regarded as being an unduly
conservative basis for the timing of revenue recognition.
To defer revenue recognition until the completion of long-term construction projects
could impair significantly the usefulness of the intervening annual financial
statements because the volume of contracts completed during a period is likely to
bear no relationship to production volume. will be too immaterial in amount to warrant deferring revenue
recognition
to
a later point in time.g. Except in unusual
circumstances. it is necessary to assume that the
collection of receivables is the decisive step in satisfying a performance obligation
and that periodic revenue measurement and.
Thus. It is not feasible because of the absence of suitable criteria for consistently
and objectively arriving at a periodic determination of the amount of revenue to
recognize. revenue recognition prior to sale would be anticipatory in nature and
unverifiable in amount. Prior to the sale. This basis of recognizing revenue is frequently used by firms whose
major source of revenue is long-term construction projects. in most situations the sale represents the most important single step in
satisfying a performance obligation. as a general rule. During each year that a project is in
process a portion of the contract price is.
Thus. properly recognized at
the point of sale. The accumulation of costs during
production does not alone generate revenue. in the vast majority of cases for which the sales basis is used.g. Rather. and the cost of managing receivables (e. therefore.
2. including making sales.CA 18-3 (Continued)
(b)
1.
Though it is recognized that revenue is earned throughout the entire production
process. revenues are recognized by
the completion of the entire process.

Income might be recognized on a production basis for some products whose
salability
at
a known price can be reasonably determined as might be the case with some
precious metals and agricultural products.
.year’s revenue. The amount of the contract price to be recognized should be
proportionate to the year’s production progress on the project.

CA 18-3 (Continued)
It should be noted that the use of the production basis in lieu of the sales basis for
the
timing of revenue recognition is justifiable only when total profit or loss on the
contracts can be estimated with reasonable accuracy and its ultimate realization is
reasonably assured.
. las
operaciones de venta con los extranjeros representan el punto en el proceso de
generación de ingresos cuando se resuelva la mayor parte de la incertidumbre sobre la
satisfacción de una obligación de rendimiento.
CA 18-3
(a) el punto de venta es la base más ampliamente utilizada para la sincronización de
reconocimiento de ingresos porque en la mayoría de los casos proporciona el grado de
evidencia objetiva que ha transferido el control al cliente. En otras palabras.